Restaurant insurance covers liability claims filed by customers, vendors, and other third parties, which may result in lawyer fees and settlements. Purchasing restaurant insurance protects your business income and assets from being used to settle claims. You can also get policies to cover professional errors and wrongdoings by directors and officers. Here’s how insurance helps you avoid legal issues:
General and Liquor Liability
Restaurants may face legal claims made by customers, employees, and vendors. If someone slips, trips, or falls on a wet, slippery floor or other hazards within your restaurant. If this happens, the injured party could file a claim for medical expenses, lost income, pain and suffering, and other damages.
Comprehensive restaurant insurance features general liability policies to cover third-party injuries and property damage claims. You could also buy product liability insurance to cover claims for foodborne illnesses and allergic reactions.
If you serve alcohol at your restaurant, purchase liquor liability insurance to cover damages caused by inebriated patrons. Check your state’s requirements to purchase adequate liability coverage for your restaurant.
Employee-Related Liability
Insurance coverage protects you from paying for employee medical expenses and lost wages if they get injured on the job. Purchase workers’ compensation insurance, which offers financial compensation to staff members who have been injured at work.
The insurance protects you from negligence lawsuits raised by employees and unions. Employee practice liability insurance also protects you against claims of harassment, discrimination, and wrongful termination.
You can get directors and officers insurance to protect the business from losses due to individual wrongdoings of executives. Errors and omissions insurance also protects your restaurant against losses due to professional errors like inaccurate expert advice and negligence.
Commercial Property Liability
Commercial property insurance pays for restaurant losses caused by fires, vandalism, and natural disasters, preventing disputes over property liability. The policy is customizable, allowing you to identify specific perils and events you wish to cover.
You can also choose an open perils policy, which offers more comprehensive coverage for events not explicitly excluded. Business interruption insurance covers lost income caused by broken equipment, fires, and covered incidents that force your restaurant to close. Some insurance providers combine general liability, commercial property, and business interruption into a single business owner’s policy. You can customize the policy to include coverage types that suit your restaurant.
Cyber Liability
Your restaurant may be targeted by hackers, especially if you process digital payments. Such transactions involve storing sensitive customer and vendor data that can lead to financial losses if exposed to hackers. Hackers can also access employee details and business systems like supply chain networks and HR management systems.
Such attacks compromise your scheduling, inventories, and other core functionalities and may lead to costly downtimes. Cyber liability insurance covers the cost of data breaches and pays for legal claims filed by affected customers, vendors, and contractors.
Purchase Restaurant Insurance Today
States expect you to provide coverage for general liability and liquor liability, but your restaurant faces many other risks. Purchasing adequate insurance protects you from paying for lawsuits and damages out of pocket. Contact a restaurant insurance company today to find out more about their packages.
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